(Photo: Jessica Fejos)

The IRS tenders are designed to help banks manage their interest rate risks and encourage their demand for longer-term government bonds. By swapping fix rates to floating rates, IRS makes keeping longer-term Hungarian sovereigns more attractive for domestic banks, with the aim of diminishing Hungaryʼs reliance on external financing. Foreigners have reduced their bond holdings by HUF 490 bln since end-April, UniCredit said.